Industrial production rose 0.7 percent in February after having increased 0.8 percent in
January. At 114.6 percent of its 1997 average, output in February was 2.7 percent above its
February 2003 level. Manufacturing output rose 1.0 percent, and the gain was widespread.
Mining output increased 0.1 percent, but with temperatures in February somewhat closer to
seasonal norms, the output of utilities declined 0.7 percent. The rate of capacity utilization for
total industry rose from 76.1 percent in January to 76.6 percent in February.

r Revised. p Preliminary.
The statistics in this release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines as manufacturing, mining, and electric and
gas utilities. Manufacturing comprises those industries included in the North American Industry
Classification System, or NAICS, manufacturing plus the logging and newspaper, periodical,
book and directory publishing industries that have traditionally been considered manufacturing and included
in the industrial sector.

Market Groups

The output of consumer goods rose 0.7 percent in February. The production of consumer
durables increased 1.0 percent; all the major components posted gains. The output index for
automotive products rose 1.4 percent, and home electronics increased 2.9 percent. The rise in
automotive products reflected an increase in the assembly of light motor vehicles from 12.0
million units to 12.3 million units (annual rate). The index for miscellaneous goods posted a 0.3
percent gain, and the index for appliances, furniture, and carpeting edged up 0.1 percent. The
production of consumer nondurables advanced 0.7 percent; all of the increase was in non-energy
goods. The output of foods and tobacco increased 0.5 percent, and clothing output climbed 0.8
percent. The index for chemical products rose 1.3 percent, and the output of paper products
advanced 1.8 percent. Consumer energy products fell 0.2 percent in February, in part as a result
of a drop in utility sales to residences.

The production of business equipment rose 1.1 percent in February. The indexes for
transit equipment and for information processing equipment each advanced 0.8 percent. The
gain in transit equipment reflected higher production of both light vehicles and civilian aircraft.
The output of industrial and other equipment increased 1.3 percent. The output of defense and
space equipment rose 0.5 percent, to a level 1.0 percent higher than that of February 2003. The
indexes for construction supplies and for business supplies each rose 0.6 percent.

The production of industrial materials rose 0.7 percent in February. The output of
durable materials increased 1.1 percent, and motor vehicle parts, semiconductors, and computer
parts had especially strong gains. The production of nondurable materials rose 1.0 percent, but a
dip in the output of utilities contributed to a 0.2 percent decline in energy materials.

Industry Groups

Manufacturing output increased 1.0 percent in February and was 3.2 percent above its
year-ago level. The factory operating rate rose 0.6 percentage point, to 75.2 percent, but was still
4.8 percentage points below its 1972-2003 average. The production of durable goods rose 1.0
percent, and the increase was spread across most of the group's subsectors. The industry with the
largest gain was machinery, in which output climbed 1.7 percent. The index for computer and
electronic products moved up 1.5 percent. Among the high-technology industries, computers and
office equipment increased 2.1 percent, and semiconductors and related electronic components
advanced 3.0 percent. The output of fabricated metal products was up 1.3 percent; motor
vehicles and parts posted a 1.6 percent gain. The following indexes also rose in February but by
smaller amounts: wood products; electrical equipment, appliances, and components; aerospace
and miscellaneous transportation equipment; and miscellaneous manufacturing. Primary metals,
nonmetallic mineral products, and furniture and related products each moved lower. The
production of nondurable goods increased 0.8 percent, and the gains were widespread. The
production of chemical products advanced 1.3 percent, and the output of apparel and leather was
up 0.8 percent. The production indexes for petroleum and coal products and for plastics and
rubber products each increased 1.0 percent or more. The production of food, beverage, and
tobacco products climbed 0.7 percent; paper production rose 0.9 percent. The only decrease
among the nondurable subsectors was for textile and product mills, in which output fell 0.4
percent. The index for printing and support was unchanged.

Production at mines rose 0.1 percent in February, and the utilization rate edged up to 85.7
percent, a rate 1.2 percentage points below its 1972-2003 average. Output at utilities fell 0.7
percent, and utilization declined to 85.3 percent, 1.6 percentage points below the 1972-2003
average. By stage of processing, capacity utilization for industries in the crude stage increased
0.3 percentage point, to 84.6 percent. Utilization for industries in the primary and semifinished
stages increased 0.4 percentage point, to 79.1 percent, and utilization for industries in the
finished stage rose 0.6 percentage point, to 72.3 percent.

Notice

With the May 14, 2004, release of the G.17, the comparison base year for the data both in
Table 9, Gross Value of Final Products and Nonindustrial Supplies, and in Table 10,
Gross-Value-Weighted Industrial Production: Stage-of-Process Groups, will be advanced to 2000
to conform with the comparison base year of the national income and product accounts.